The Brazilian government has announced that it is planning to phase out the country's financial transactions tax (IOF) on foreign exchange transactions to meet its commitments for joining the OECD. Brazil plans to phase out the IOF gradually beginning with the removal of IOF on short-term inflows and outflows of foreign funds in 2022, which will be achieved by zero-rating the IOF on such transactions through a presidential decree. This is part of the first phase covering short-term transacti…